Interstate Circuit, Inc. v. United States
United States Supreme Court
306 U.S. 208 (1939)
Interstate Circuit (Interstate) (defendant) and Texas Consolidated Theaters, dominant Texas movie-theater chains, separately dealt with eight film distributors supplying 75% of first-run U.S. films. Interstate's manager O'Donnell sent each distributor an identical letter demanding, as a condition of continued business, that the distributor bar its films from later showing at sub-25-cent theaters and from double-billing with another feature — and each letter listed every other distributor also receiving the demand. Every distributor ultimately agreed to O'Donnell's terms. The trial court found the distributors had conspired together to take uniform action on the demands, violating section 1 of the Sherman Act, and Interstate appealed.
Whether, under section 1 of the Sherman Act, an agreement to participate in a conspiracy may be inferred from the course of conduct of the alleged co-conspirators.